CII: Re trade with Bangle to boost bilateral biz

Trade settlement between India and Bangladesh in Indian currency will boost bilateral commerce, feels industry body CII. Bangladesh and India launched a trade settlement mechanism in Indian Rupee (INR) with the broad objective of reducing dependency on the US dollar and strengthening regional currency and trade.

“This is a welcome step. This would certainly promote growth of trade between the two countries and support the increasing interest of the global trading community in INR,” said chairman CII National Committee on Exim Sanjay Budhia. Since all exports and imports and settlement of trade transactions under this arrangement may be denominated and invoiced in INR, this would reduce dependence on the US Dollar and would address situations like scarcity of forex reserves apart from strengthening regional currency and trade.

Due to this arrangement, the transaction costs during trade between the countries will reduce thereby boosting the Indian exports to Bangladesh, he added.